Investors Face Class Action Lawsuit Against Customers Bancorp: Key Details You Need to Know
A significant legal development has unfolded for investors in Customers Bancorp, Inc. as a federal securities class action lawsuit has been filed in the United States District Court for the Eastern District of Pennsylvania. This action, led by the notable law firm Wolf Haldenstein Adler Freeman & Herz LLP, stems from allegations made against the company regarding misleading financial disclosures made between March 1, 2024, and August 8, 2024.
Customers Bancorp, which operates primarily through its wholly owned subsidiary, Customers Bank, has branded itself as a forward-thinking institution emphasizing strong risk management and customer trust. During the specified class period, the company claimed its internal and disclosure controls were effective and adequately detailed risks associated with the Bank Secrecy Act, digital assets, as well as its blockchain payment services. However, these assertions are under scrutiny as the lawsuit alleges that significant deficiencies existed concerning compliance with regulations focused on anti-money laundering (AML).
The situation began to escalate on April 12, 2024, when Customers Bancorp revealed that its Chief Financial Officer, Carla A. Leibold, was terminated amid allegations of policy violations. Notably, just one month prior, Leibold had sold a substantial amount of stock—close to $2 million—creating concerns over potential insider trading and corporate governance issues.
Despite claiming that Leibold's departure resulted from a mutual agreement, the red flags did not stop there. By August 8, 2024, it became evident that Customers Bancorp was facing serious allegations from the Federal Reserve regarding deficiencies in its risk management practices. The Federal Reserve's enforcement action highlighted compliance failures associated with the Bank Secrecy Act, further exacerbating concerns over the bank's commitment to adhering to essential financial regulations.
The fallout from these revelations was swift. On the day the Federal Reserve's announcement was made, Customers Bancorp's stock plummeted by $8.38, reflecting a 15.1% drop and closing at $47.01 per share—a stark indicator of investor sentiment following the news. This was not just a one-day event; following the disclosure of a Consent Order from the Commonwealth of Pennsylvania, the stock further declined to close at $45.93, signaling ongoing investor concern.
Investors who suffered losses during this tumultuous period are encouraged to reach out to Wolf Haldenstein to join the class action lawsuit, with the deadline for lead plaintiff applications set for January 31, 2025. The experienced attorneys at Wolf Haldenstein, whose expertise in securities litigation has been recognized across various courts, are ready to assist individuals seeking to assert their rights and recover losses.
Those affected by the downturn in Customers Bancorp's stock price are urged to act quickly to explore their options, as the implications of this class action could set important precedents within the securities landscape. To learn more about the ongoing litigation and how to participate, individuals can contact Wolf Haldenstein directly through the firm’s dedicated phone lines or website. As the case develops, it will undoubtedly attract significant attention, reinforcing the importance of transparency and accountability in the banking sector.
Customers Bancorp, which operates primarily through its wholly owned subsidiary, Customers Bank, has branded itself as a forward-thinking institution emphasizing strong risk management and customer trust. During the specified class period, the company claimed its internal and disclosure controls were effective and adequately detailed risks associated with the Bank Secrecy Act, digital assets, as well as its blockchain payment services. However, these assertions are under scrutiny as the lawsuit alleges that significant deficiencies existed concerning compliance with regulations focused on anti-money laundering (AML).
The situation began to escalate on April 12, 2024, when Customers Bancorp revealed that its Chief Financial Officer, Carla A. Leibold, was terminated amid allegations of policy violations. Notably, just one month prior, Leibold had sold a substantial amount of stock—close to $2 million—creating concerns over potential insider trading and corporate governance issues.
Despite claiming that Leibold's departure resulted from a mutual agreement, the red flags did not stop there. By August 8, 2024, it became evident that Customers Bancorp was facing serious allegations from the Federal Reserve regarding deficiencies in its risk management practices. The Federal Reserve's enforcement action highlighted compliance failures associated with the Bank Secrecy Act, further exacerbating concerns over the bank's commitment to adhering to essential financial regulations.
The fallout from these revelations was swift. On the day the Federal Reserve's announcement was made, Customers Bancorp's stock plummeted by $8.38, reflecting a 15.1% drop and closing at $47.01 per share—a stark indicator of investor sentiment following the news. This was not just a one-day event; following the disclosure of a Consent Order from the Commonwealth of Pennsylvania, the stock further declined to close at $45.93, signaling ongoing investor concern.
Investors who suffered losses during this tumultuous period are encouraged to reach out to Wolf Haldenstein to join the class action lawsuit, with the deadline for lead plaintiff applications set for January 31, 2025. The experienced attorneys at Wolf Haldenstein, whose expertise in securities litigation has been recognized across various courts, are ready to assist individuals seeking to assert their rights and recover losses.
Those affected by the downturn in Customers Bancorp's stock price are urged to act quickly to explore their options, as the implications of this class action could set important precedents within the securities landscape. To learn more about the ongoing litigation and how to participate, individuals can contact Wolf Haldenstein directly through the firm’s dedicated phone lines or website. As the case develops, it will undoubtedly attract significant attention, reinforcing the importance of transparency and accountability in the banking sector.
Topics Financial Services & Investing）
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